Mindtree to maintain double-digit growth: L&T head Subrahmanyan

The engineering conglomerate is the majority owner of the mid-tier technology services company, after it acquired 60.06% stake.

The priority of the new management is “to drive profitability” and the growth roadmap is “well chalked out”, said SN Subrahmanyan, director of Mindtree and chief executive of L&T.

Bengaluru: Larsen and Toubro said Mindtree would maintain its industry leading double-digit growth rate, amid a leadership transition at the Bengaluru-based company after promoters quit earlier this month.

The engineering conglomerate is the majority owner of the mid-tier technology services company, after it acquired 60.06% stake. Although L&T acquired the stake at 980 per share, Mindtree’s shares have dropped in value since then on investor concerns over the exit of its founders and the company’s growth. It closed 0.8% lower at Rs 689.50 on the BSE on Friday.

The priority of the new management is “to drive profitability” and the growth roadmap is “well chalked out”, said SN Subrahmanyan, director of Mindtree and chief executive of L&T.

Mindtree has done well among midtier IT firms and would be professionally run, Subrahmanyan told analysts in a call. “Having now gained control, L&T will provide full protection to Mindtree from any future attempt to destabilise the management.

The network of L&T is worldwide and we will provide this kind of network to Mindtree,” he said.

The L&T management has received positive feedback from clients of the $1 billion software services exporter, he said. “AM Naik (L&T chairman) has written to each and every client of Mindtree, and assured them of full cooperation and the benefits of the services. And, we have got replies from some of the clients,” Subrahmanyan said. Last week, Naik became Mindtree’s non-executive chairman.